If the economy booms, Meyer&Co. stock will have a return of 18.7 percent. If the economy goes into a recession, the stock will have a loss of 7.8 percent. The probability of a boom is 69 percent while the probability of a recession is 31 percent. What is the standard deviation of the returns on the stock?

Multiple Choice

9.47%

12.26%

7.48%

8.06%

8.80%